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The Long- Run Equilibrium Outcomes in Monopolistic Competition and Monopoly

Question 27

Multiple Choice

The long- run equilibrium outcomes in monopolistic competition and monopoly are similar because in both market structures:


A) firms earn economic profits
B) firms produce at a point where price is less than marginal revenue
C) firms realise all economies of scale
D) firms produce at a point where price is greater than marginal cost

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